At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

If you have good credit, a good APR is easy to come by — but what qualifies as a “good” annual percentage rate may vary based on several factors.

APRs are tied to a benchmark figure called the prime rate, which is the lending rate that banks offer to customers with the best credit. When the prime rate increases, credit card interest rates usually do, too. Some cards have APR ranges — for example, 13% to 23% — which may depend on the type of credit card and your specific creditworthiness. The better your credit score, the lower your interest rate. That’s why the lowest advertised APR isn’t always what you’ll get.

Of course, if you don’t carry a balance from month to month, the APR is irrelevant because you’ll never be charged interest. But if you’re shopping for cards based on APR, keep in mind your payment habits and your financial needs.

How to evaluate APRs

The average APR charged in the third quarter of 2018 for credit card accounts that incurred interest was 16.46%, according to the Federal Reserve.

But not all credit cards are created equal — and some will be more expensive to carry a balance on than others. For example, a rewards credit card with benefits and perks is likely to have a higher APR than a balance transfer credit card. Understand your financial needs first so you can determine what kind of product will best suit your requirements.

The average APR charged in the third quarter of 2018 for credit card accounts that incurred interest was 16.46%, according to the Federal Reserve.

And different transactions — purchases, balance transfers and cash advances — may have different APRs on the same card. There’s even sometimes a penalty APR for late payments. These rates will be spelled out in the card’s terms and conditions, so be sure to review them.

If a low APR on purchases is your priority, you might also consider researching options from credit unions instead of major banks. The average credit card interest rate at credit unions was 11.61%, according to Sept. 29, 2017, data — the most recent available — from financial research firm S&P Global Market Intelligence.

What to expect from cards with low APRs

Depending on the issuer, low-interest credit cards usually require a good credit score — 690 or higher — to qualify.

These cards may lack some of the bells and whistles of rewards credit cards, but they can save you money on interest if your account has a balance each month — such as from financing a large purchase or transferring an existing high-interest balance to the card.

The ideal APR is a 0% introductory offer that lets you avoid interest payments for a period of time. The Wells Fargo Platinum Visa card, for example, has a pretty good 0% intro APR period: 0% APR for 18 months on purchases and qualifying balance transfers, and then the ongoing APR of 13.74% - 27.24% Variable APR.

What to expect from cards with high APRs

Rewards credit cards and store credit cards tend to have higher APRs. They may offer valuable benefits, perks or discounts, but they aren’t ideal if you carry a balance each month, as the interest can eat away at rewards.

With a few exceptions, most rewards cards require a good credit score. The average APR for rewards credit cards that offer miles or cash back ranges from about 15% to 20% depending on creditworthiness, according to a 2015 report by the Consumer Financial Protection Bureau.

The average APR for rewards credit cards that offer miles or cash back ranges from about 15% to 20% depending on creditworthiness, according to a 2015 report by the Consumer Financial Protection Bureau.

Store credit cards can have even higher APRs than general rewards cards — the average is about 24%, according to the CFPB’s most recent report. And APRs may be higher still on these cards’ deferred interest promotions, which advertise “no interest if paid in full” within a certain timeframe. (If you still owe money when the promotional period ends, you’ll be charged all the interest that’s been accumulating retroactively.) The average APR on deferred interest credit cards can reach as high as 29.99%, according to a report by the National Consumer Law Center.

Qualifying for a better APR

While you may not be able to control all factors that determine your APR, you can be proactive in maintaining or polishing your creditworthiness. You can also take a shot at negotiating a lower APR with your creditor.

If it turns out your credit score needs a boost, the following steps could help you qualify for a lower APR in the future:

Intermediate

Advanced

We want to hear from you and encourage a lively discussion among our users. Please help us keep our site clean and safe by following our posting guidelines, and avoid disclosing personal or sensitive information such as bank account or phone numbers. Any comments posted under NerdWallet's official account are not reviewed or endorsed by representatives of financial institutions affiliated with the reviewed products, unless explicitly stated otherwise.

Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.